Maiden Mineral Resource Statement at Kamativi Tailings Lithium Project Shows: Indicated Resource 26,320,000 tonnes at 0.58% Li2O

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Vancouver, BC September 20, 2018 – Canadian strategic metals company Chimata Gold Corp. (CSE – CAT) (“Chimata” or the “Company”) announces completion of a maiden Mineral Resource Statement for the Kamativi Tailings Lithium Project (the “Kamativi Project”):

Table 1 Kamativi Tailings Lithium Project Mineral Resource for the Total Tailings, 10 September 2018

Category

Tonnes

Density

Li2O

SnO2

Ta2O5

Fe2O3

Nb2O5

(Millions)

t/m3

%

ppm

ppm

(%)

(ppm)

Indicated

26.32

1.67

0.58

493

41

1.22

65

Inferred

0.30

1.67

0.62

544

45

1.45

62

On behalf of Chimata in association with its local Zimbabwean partner Jimbata (Pvt) ltd (“Jimbata”), The MSA Group (Pty) Ltd (“MSA”) has completed a Mineral Resource Statement for the Kamativi Project. The Kamativi Project is located outside Kamativi Village in the Matabeleland North Province of Zimbabwe, approximately 185 kilometres east-southeast of Victoria Falls and approximately 310 km northwest of Bulawayo. The Kamativi Project is associated with the historical Kamativi Tin Mine, which ceased operation in 1994.

The Kamativi tailings storage facility is a man-made deposit that was created from tailings produced from processing of tin mineralisation at the Kamativi Tin Mine. The Kamativi tailings were deposited over the period 1936 to 1994 and are derived from the mining and processing of the tin-bearing (spodumene-bearing lithium-caesium-tantalum (“LCT”) pegmatites. At Kamativi, spodumene is the predominant lithium mineral present, with minor amounts of cookeite, zinnwaldite, petalite and amblygonite.

The Mineral Resource Statement was based on geochemical analyses and density measurements, attained from drilling and pitting respectively, undertaken by Jimbata between March 2018 and June 2018. A total of 115 vertical holes were drilled at Kamativi at a nominal 100 m grid spacing. Initially, drilling was by coring, and later an auger method was employed. Blank samples, certified reference materials and duplicates were included with the drill hole samples. As an additional check, 6% of the drill hole samples assayed by the primary laboratory were re-assayed by a second laboratory. The QP is satisfied that the assays are of sufficient quality for use in Mineral Resource estimation.

Seven holes were twin drilled using both drilling methods employed at Kamativi. The auger samples exhibit better recoveries than the core samples. Analyses of the twin hole data demonstrated that the core sample data are overall unbiased compared to auger data. Therefore, the core sample data was considered acceptable to use in Mineral Resource Statement, together with the auger sample data.

The volume of the dump was defined by surfaces representing the top and bottom of the dump. The top of dump surface was based on surveyed points on the dump and around the boundary of the dump, as well as drill hole collar surveys. The surface representing the bottom of the dump was based on drill hole intersection of the base of the dump, as well as survey points of the boundary of the dump. A three-dimensional block model was created between the surfaces and grades were estimated into the blocks using ordinary kriging. An average dry density was applied to derive the tonnage of the tailings.

Mr Michael Cronwright, an employee of MSA and one of the Qualified Persons for this Mineral Resource Statement, conducted site inspections to the project from the 7th to the 8th of August 2017, and from the 23rd to the 24th April 2018. The first site visit was undertaken to review the sampling of the tailings by the current owners that was carried out in order to verify sampling information collected by the previous owners. The second visit was to review the exploration processes used to provide information for the maiden Mineral Resource Statement. MSA considers that the exploration work conducted by Chimata was carried out using appropriate techniques for the style of mineralisation at Kamativi, and that the resulting database is suitable for Mineral Resource Statement.

KAMATIVI MINERAL RESOURCE STATEMENT

The Mineral Resource was estimated using the Canadian Institute of Mining, Metallurgy and Petroleum (CIM) Best Practice Guidelines and is reported in accordance with the 2014 CIM Definition Standards, which have been incorporated by reference into National Instrument 43-101 – Standards of Disclosure for Mineral Projects (“NI 43-101”). The Mineral Resource is classified into the Indicated and Inferred categories as shown in Table 1.

The Mineral Resource is reported for the total tailings’ storage facility. The lowest Li2O block estimate is 0.22% which MSA considers has reasonable prospects for eventual economic extraction, particularly given the anticipated low-cost bulk mining and non-selective nature of tailings storage facility reclamation and the outcome of initial metallurgical test work combined with the project located on a historical mine site.

Preliminary mineral processing and metallurgical test work indicates that a concentrate of a commercially acceptable specification can be produced.

Table 1 Kamativi Lithium Tailings Mineral Resource for the Total Tailings Dump, 10 September 2018

Category

Tonnes

Density

Li2O

SnO2

Ta2O5

Fe2O3

Nb2O5

(Millions)

t/m3

(%)

ppm

ppm

(%)

(ppm)

Indicated

26.32

1.67

0.58

493

41

1.22

65

Inferred

0.30

1.67

0.62

544

45

1.45

62

Notes:

  1. All tabulated data have been rounded and as a result minor computational errors may occur.
  2. Mineral Resources which are not Mineral Reserves have no demonstrated economic viability.
  3. Fe2O3 is considered a deleterious material and is reported for information purposes.

The Indicated Mineral Resource has been tabulated using a number of cut-off grades as shown in Table 2 and the Inferred Mineral Resource in Table 3.

Table 2 Kamativi Lithium Tailings Indicated Mineral Resource Grade-Tonnage Table, 10 September 2018

Cut Off

Tonnes

Density

Li2O

SnO2

Ta2O5

Fe2O3

Nb2O5

Li2O (ppm)

(Millions)

t/m3

(%)

(ppm)

(ppm)

(%)

(ppm)

2,000

26.32

1.67

0.58

493

41

1.22

65

2,500

26.27

1.67

0.58

493

40

1.22

65

3,000

25.93

1.67

0.59

493

40

1.21

65

3,500

24.65

1.67

0.60

495

40

1.21

64

4,000

22.75

1.67

0.62

499

39

1.21

62

4,500

20.33

1.67

0.64

502

38

1.22

61

5,000

17.53

1.67

0.67

505

37

1.22

59

5,500

14.63

1.67

0.70

508

36

1.22

58

6,000

11.72

1.67

0.73

508

34

1.22

56

6,500

9.11

1.67

0.76

506

33

1.21

55

7,000

6.75

1.67

0.78

503

32

1.20

53

7,500

4.10

1.67

0.82

497

32

1.19

52

8,000

2.57

1.67

0.85

498

32

1.19

52

8,500

0.98

1.67

0.90

496

32

1.18

52

9,000

0.43

1.67

0.93

505

31

1.18

53

9,500

0.11

1.67

0.96

534

29

1.16

53

10,000

0.00

1.67

1.02

625

35

1.12

60

Notes:

  1. All tabulated data have been rounded and as a result minor computational errors may occur.
  2. Mineral Resources which are not Mineral Reserves have no demonstrated economic viability.
  3. Fe2O3 is considered a deleterious material and is reported for information purposes.

Table 3 Kamativi Lithium Tailings Inferred Mineral Resource Grade-Tonnage Table, 10 September 2018

Cut Off

Tonnes

Density

Li2O

SnO2

Ta2O5

Fe2O3

Nb2O5

Li2O (ppm)

(Millions)

t/m3

(%)

(ppm)

(ppm)

(%)

(ppm)

3,500

0.30

1.67

0.62

544

45

1.45

62

4,000

0.30

1.67

0.62

544

45

1.45

62

4,500

0.29

1.67

0.62

548

45

1.46

62

5,000

0.26

1.67

0.64

553

45

1.47

62

5,500

0.21

1.67

0.67

556

46

1.48

61

6,000

0.15

1.67

0.70

545

47

1.44

60

6,500

0.12

1.67

0.71

534

46

1.42

59

7,000

0.07

1.67

0.75

525

46

1.39

58

7,500

0.03

1.67

0.77

487

43

1.26

57

8,000

0.00

1.67

0.80

451

39

1.16

54

Notes:

  1. All tabulated data have been rounded and as a result minor computational errors may occur.
  2. Mineral Resources which are not Mineral Reserves have no demonstrated economic viability.
  3. Fe2O3 is considered a deleterious material and is reported for information purposes.

The Mineral Resource Statement has been completed by Mrs Ipelo Gasela (BSc Hons, GDE) who is a geologist with 13 years’ experience in Mineral Resource evaluation and reporting. She is a Senior Mineral Resource Consultant for MSA (an independent consulting company), is a member in good standing with the South African Council for Natural Scientific Professions (SACNASP) and is a Member of the Geological Society of South Africa (GSSA). Mrs Gasela has the appropriate relevant qualifications and experience to be considered a “Qualified Person” for the style and type of mineralisation and activity being undertaken as defined in NI 43-101.

Michael Cronwright (M.Sc. Exploration Geology, B.Sc. Hons) is a geologist with 19 years’ experience in mineral exploration and reporting. He is a Principal Consultant for MSA and is a Fellow of the Geological Society of South Africa and registered Professional Scientist with South African Council for Natural Scientific Professions (SACNASP). Mr Cronwright has the appropriate relevant qualifications and experience to be considered a “Qualified Person” for the style and type of mineralisation and activity being undertaken as defined in NI 43-101.

checklist of assessment and reporting criteria

The attached checklist of assessment and reporting criteria summarises the pertinent criteria for this Mineral Resource in accordance with CIM guidelines and MSA’s assessment and comment on the estimates.

Drilling techniques

The drilling was undertaken by independent drilling contractors and managed by MSA. Two drilling methods were employed at the Kamativi Lithium Tailings, namely a core drilling method and an auger drilling method. The core drilling was carried out using a combination of bit sizes with internal diameters of 60 mm, 76 mm and 105 mm. The auger method was drilled with an internal diameter of 42 mm. Drill runs of 1.5 m were used.

Logging

All drill holes were geologically logged by qualified geologists. The logging was of an appropriate standard for Mineral Resource estimation.

Drill sample recovery

Recovery was acceptable (average 86.2%) for the auger method for this type of deposit. Although the recoveries were lower for the coring method (average 70%), no biases to the sample grade were apparent

Sampling methods

All the material from each drill run was collected, bagged and sealed on site.

Samples were kept on site until inspected and signed off by the Zimbabwe Ministry of Mines and then transported to a storage depot until the end of the drilling programme, after which, the samples were couriered to SGS Randfontein for assaying.

Mr M Cronwright of MSA observed the sampling procedure during the site visit and it was considered to be acceptable.

Quality of assay data and laboratory tests

All samples were sent to SGS Randfontein for sample preparation and assay. SGS Randfontein is accredited by SANAS (South African National Standard) and conforms to the requirements of ISO/IEC 17025. Mr M. Cronwright of MSA undertook a laboratory audit at SGS Randfontein in order to observe the preparation and analytical processes for the Kamativi samples.

Check assay samples were sent to the ALS laboratory, in Vancouver, for second laboratory verification assay. The ALS laboratory in Vancouver is also ISO/IEC 17025 accredited. The check assay samples were assayed by sodium peroxide fusion with an inductively coupled plasma – optical emission spectrometry finish.

At SGS, samples were dried; thereafter 3 m composite samples were created by combining equal masses of material from two successive 1.5 m samples. The laboratory prepared a composite duplicate to check that the compositing process was appropriate. The composite samples were then pulverised to 85% passing 75 microns in a carbon steel ring and puck pulveriser. A 0.2g aliquot was collected for assay. The laboratory collected pulp duplicates from the routine samples to assess the appropriateness of the sub-sampling process.

The assay methods that were employed by SGS included a sodium peroxide fusion with an inductively coupled plasma – optical emission spectrometry finish for the analyses of Li and Fe as well as Al, Ba, Ca, Cr, Cu, K, Mg, Mn, P, S, Si, Sr, Ti, V and Zn. This method has a lower detection limit of 10 ppm. Sodium peroxide fusion, with an inductively coupled plasma – mass spectrometry finish was used for assaying for Ta, Sn and Nb, as well as, Be, Bi, Cd, Ce, Co, Cs, Dy, Er, Eu, Ga, Gd, Ge, Ho, In, La, Lu, Mo, Nd, Ni, Pb, Pr, Rb, Sb, Sc, Sm, Tb, Th, Tl, Tm, U, W and Y. This method has a lower detection limit of 1 ppm. QC samples, including samples of two certified reference materials, blanks and duplicates, were routinely inserted as part of an independent QAQC process. The CRM and blank samples were inserted by MSA, while the composite and pulp duplicates were inserted by the laboratory’s preparation facility. As an additional check, 6% of the samples analysed at SGS were assayed by ALS Vancouver.

The QAQC measures revealed the following:

  • No assays plotted outside three standard deviations of the certified mean Li value of AMIS0338, which is a low grade (1,742 ppm Li) CRM. The average Li assays of this CRM showed a relative difference of 7% higher than the certified mean. The accuracy of the Li assays of AMIS0338 were considered to be of acceptable accuracy. A total of four Li assays out of 28 for the high grade AMIS0341 CRM (5,041 ppm Li) plotted outside of three standard deviations from the certified mean value of the CRM. The average Li assays of this CRM showed no bias.
  • Blank sample assays indicate that no significant contamination occurred during the programme.
  • Duplicate assays within SGS demonstrate precision levels are within reasonably expected ranges.
  • Lithium assays of the CRMs included with the second laboratory check assays were within two standard deviations of the certified mean value.
  • The second laboratory check assays for lithium were on average 6% lower than the primary laboratory assay and the tin assays were 8% higher.
  • The QP is satisfied that the assays are of sufficient quality for use in Mineral Resource estimation.

Verification of sampling and assaying

MSA was responsible for managing the drilling programme, and Mr Cronwright observed the drilling and sampling process during the site visit. Seven holes that were initially drilled with the coring method were twinned by auger drilling. The analyses of the twinned holes showed that the core samples have a higher-grade variability than the auger samples but found the mean grades of the two drilling methods to be similar and show no significant bias. In the QP’s opinion, the results of both drilling methods are appropriate to use in Mineral Resource estimation.

Location of data points

All drill hole collars and the topography, including the top of the dump as well as the boundary of the dump, were surveyed by a qualified surveyor, Mr Grabwell Fundira. The surveys were undertaken in the geodetic system of UTM Zambia Arc 1950 zone 35K.

Tonnage factors (in situ bulk densities)

A total of 60 pits were excavated at different locations over the dump to create positions for density samples. Density samples were taken at 1 m intervals from close to surface, below the loose material, to up to 6 m depth. The density samples were taken by inserting an open sided steel block with a dimension of 10 cm by10 cm by10 cm into the sidewall of the pit. The material retrieved from inside the steel block was dried and weighed to calculate a dry bulk density. A total of 214 density measurements were taken, which have an average density of 1.67 t/m3. This average density was applied throughout the dump to convert volume into tonnes.

Data density and distribution

A total of 115 vertical holes were drilled. The holes were drilled on a 100 m spaced grid orientated northwest in line with the orientation of the dump.

Database integrity

The Kamativi data is stored in an MS-Access database, managed by MSA.

Dimensions

The Kamativi tailings dump is approximately 1,900 m northwest to southeast and 580 m northeast to southwest with a maximum depth of 39 m. The total volume is approximately 16,000,000 m3.

Geological interpretation

The dump is a man-made deposit of tailings sourced from the historical Kamativi Tin Mine. The dump and below the dump intersections were clearly discernible and were logged.

The volume of the dump was defined by surfaces representing the top and bottom of the dump. The top of the dump surface was based on surveyed points on top of the dump and around the boundary of the dump as well as drill hole collar surveys. The surface representing the bottom of the dump was based on drill hole intersections of the base as well as survey points of the boundary of the dump. Not all of the drill holes penetrated the base of the dump. An additional surface was modelled representing the base of the drilling. There was one area below this surface that is considered to have lower confidence where the base of the dump has been extrapolated from short holes.

Domains

The tailings were estimated as a single domain.

Compositing

The 1.5 m drill sample lengths were composited to 3 m. Sample lengths less than 1.5m were discarded. The discarded sample lengths had a similar mean grade as the rest of the composite samples, therefore no bias was introduced.

Statistics and variography

Li2O distribution is slightly positively skewed with coefficients of variation (CV) of approximately 0.34. The distribution indicates two populations. The relatively low Li2O grades occur in the northern and southern-most part of the dump, while the middle of the dump has relatively high grades. The higher-grade population transitions into the low-grade areas and therefore they were not treated as separate estimation domains.

SnO2, Ta2O5, Fe2O3 and Nb2O5 distributions are positively skewed with CVs of approximately 0.30, 0.53, 0.27 and 0.29 respectively. All distributions show a single population except for Nb2O5. The correlations between the variables are poor.

The density distribution is negatively skewed and do not exhibit a well-defined single population. The deeper samples have the highest density.

Variograms were calculated in the horizontal plane since the tailings were deposited and settled horizontally. Variograms were modelled for Li2O, SnO2, Ta2O5, and Nb2O5 with isotropic ranges of between 200 m and 500 m in the horizontal plane and a short-ranges of between 20 m and 36 m vertically.  The Fe2O3 variogram was modelled with a major direction at 030/00 and a range of 330 m, the semi-major direction at 120/00 has a range of 180 m and the minor direction in the vertical has a range of 32 m.

Top or bottom cuts for grades

Top cuts were not applied to the composite grades of any variables, as no outliers were observed.

Data clustering

The holes were drilled on a regular 100 m grid, with closer spaced drilling between a few holes in the high-grade area to the south eastern part of the dump. The drill hole spacing in this area was observed down to 25 m.

Block size

A block model of 50 m N by 50 m E by 3 m RL was created with a minimum sub-cell of 5 m N by 5 m E by 1 m RL.

Grade estimation

Grades were estimated using ordinary kriging into parent cells.

A minimum number of 4 and a maximum of 12 three metre composites were required to estimate each variable in a single block. An elliptical search of 100 m x 100 m in the horizontal plane and 5 m in the vertical plane was used to select samples to estimate each block. The search was increased by 1.5 times the original search distance where enough samples for estimation were not found by the first search. A search of 10 times the first search was used to ensure that the entire model was estimated.

Resource Classification

In classifying the Mineral Resource, the main considerations were as follows:

  • The drill spacing is sufficient to estimate grades and model the dump framework to a reasonable degree of confidence.
  • There is acceptable confidence in the accuracy and integrity of the Kamativi data.
  • Two types of drilling were generally used in separate areas, except where twin drilling was undertaken. Comparison of the twinned holes (core and auger) showed that there is no bias between the two methods.
  • The surfaces used to define the dump are based on measured data, except for the extrapolated bottom of dump surface. Where drilling continued to the base of the dump the dump model is of high confidence.

The Mineral Resource was classified as Indicated from the top of the dump to the bottom surface of the drill hole intersections and Inferred in an area where the bottom of dump was extrapolated from short holes that did not penetrate the base of the dump.

Mining Cuts

No mining cuts were considered in the estimate. The dimension and shape of the dump and the unconsolidated nature of the material makes it amenable to low-cost bulk mining methods.

Metallurgical factors or assumptions

Preliminary mineral processing and metallurgical test work indicates that a concentrate of a commercially acceptable specification can be produced. Deleterious estimates are included in the block model.

Legal Aspects and Tenure

The Kamativi Project is a joint venture (“JV”) between the Zimbabwe Mining Development Corporation (“ZMDC”), owners of Kamativi Tin Mines which holds 40 % of the Project, and Jimbata, which holds 60 %. A JV Agreement was entered into between Lintmar (Private) Limited (“Lintmar”) and ZMDC on 2 February 2018. A letter from Jimbata, dated 16 February 2018 confirms the cession by Lintmar of its rights and interests in the Kamativi Mine Tailings Dump to Jimbata, including all aspects of the JV Agreement with ZMDC.

The JV Company (Jimbata (60%) and Kamativi Tin Mines (40%), Kamativi Tailings Company (Pvt) Limited, was incorporated on 16 February 2018 as per the Companies Act [Chapter 24:03] of Zimbabwe.

Audits, reviews and site inspection

The following review work was completed by MSA:

  • Michael Cronwright of the MSA Group and one of the Qualified Persons for this Mineral Resource visited the project from the 7th to 8th of August 2017 and again from the 23rd to the 24th April 2018, in order to review the exploration processes and the collection of information for Mineral Resource Statement.

No external reviews have been completed.

John McTaggart, Managing Director of Jimbata  commented, “The maiden resource statement marks the completion of another key milestone in the development of the Kamativi Project. The results generated confirm our belief in the project and underscore the significant potential at Kamativi. The Company now looks forward to aggressively pursuing further metallurgical test work in the planned development of the beneficiation plant for the Kamativi Project in line with the Rapid Results Initiative set out by the Government of Zimbabwe”.

Alain Moreau, a “qualified person” as defined by NI 43-101 has approved the scientific and technical disclosure in this press release.

ON BEHALF OF THE BOARD

Richard Groome

Chairman and Interim President and CEO

Further information regarding the Company can be found on SEDAR at www.SEDAR.com, or by contacting the Company directly at (604) 674-3145.

This news release may contain forward–looking statements. Forward-looking statements address future events and conditions and therefore involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements. Particular risks applicable to this press release include risks associated with planned production, including the ability of the company to achieve its targeted production outline due to regulatory, technical or economic factors. In addition, there are risks associated with estimates of resources, and there is no guarantee that a resource will have demonstrated economic viability as necessary to be classified as a reserve. There is no guarantee that additional exploration work will result in significant increases to resource estimates

The Canadian Securities Exchange does not accept responsibility for the adequacy or accuracy of this release.

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